Company Number: 13009500

Analysis Date: 2025-07-20 14:29 UTC

1. Credit Opinion: APPROVE
   Cloudbox IT Limited is a micro private limited company incorporated in late 2020, currently active and compliant with filing obligations. The company has demonstrated a positive shift in financial position with net current assets increasing from £10 in 2022 to £23,723 in 2023, indicating improved liquidity and working capital. The presence of a single shareholder with full control simplifies governance, and the recent appointment of a second director may provide additional management support. Although limited in scale, the financials show no signs of distress, and the business operates in the IT consultancy sector, which generally offers stable demand.

2. Financial Strength:
   The balance sheet shows a very modest fixed asset base (£167), which is typical for an IT consultancy with minimal capital expenditure. Current assets have grown substantially to £89,821, mainly cash or receivables, while current liabilities stand at £66,098, leaving a positive net working capital of £23,723. Shareholders’ funds have increased proportionately to £23,890, reflecting retained earnings or capital infusion. Overall, the company’s financial position is sound for its size with no evident overleveraging.

3. Cash Flow Assessment:
   The company’s cash and current asset position indicate reasonable liquidity to meet short-term obligations. The net current assets position suggests the company can cover its current liabilities comfortably. However, the absence of detailed cash flow statements limits full assessment. Given the micro entity status and the business nature, cash flow risk appears low but should be monitored as the company grows.

4. Monitoring Points:

• Monitor the trend in current liabilities relative to current assets to ensure liquidity remains stable.
• Watch for any significant changes in working capital needs as the business scales.
• Review profitability and cash flow generation once more detailed accounts are available to assess ongoing debt service capability.
• Track management stability and changes in directorship, especially as the company expands.
• Keep an eye on payment patterns from clients given the consultancy business model, which may be cyclical.